Trump’s tariffs drive up prices, businesses feel strained

Consumers and businesses are feeling the heat from President Donald Trump’s escalating trade war as prices surge for groceries and vital materials. 

Tariffs are driving costs higher across key inflation indicators, with little sign of relief.

The big picture
US businesses, not foreign suppliers, are absorbing most of the tariff burden. 

Import prices rose at the fastest pace this year, undermining the White House claim that overseas exporters would pay. 

Wholesale prices also climbed at their quickest rate in three years, signaling that consumers may soon face steeper bills. 

Fresh and dry vegetable prices alone jumped nearly 40% last month, the sharpest spike since 2022. 

Mexico, a major US vegetable supplier, now faces 25% tariffs, further fueling food inflation. 

Meanwhile, the 50% tariffs on steel and aluminum will expand to more than 400 other goods on Monday, said the Customs and Border Protection.

What’s next?
Federal Reserve officials warn that persistent tariffs could keep inflation elevated and complicate planned rate cuts. 

Markets now await Fed Chair Jerome Powell’s Jackson Hole speech for signals on what comes next. It is scheduled for Friday.